How do I add invoice factoring into my marketplace without using my own cash?

You can add invoice factoring into your marketplace without using your own cash by using third-party factoring companies like Aria, Mondu, Sonovate and Treyd.

The key is embedded finance: the provider advances funds, takes risk, handles collections — while your platform remains front and centre.

Comparison of Invoice Factoring Solutions

Provider	Best For	Key Features	Risk Model	Integration Type
Aria	European B2B marketplaces, SaaS, procurement	Instant payouts, credit risk absorption, global reach, white-label API	Non-recourse	REST API, white-label, PSP integration
Mondu	European B2B procurement and product marketplaces	Buy Now Pay Later, Get Paid Now, EU presence, flexible buyer terms	Non-recourse	REST API, widget-based onboarding
Sonovate	Recruitment, staffing, timesheet-based platforms	Payroll funding, invoice factoring, bad-debt protection	Varies by contract	APIs for labor platforms
Treyd	Inventory-heavy marketplaces, wholesale	Purchase order financing, supplier prepayment, inventory support	Varies	API, purchase order integration
Stripe Capital	Stripe-based platforms with high sales volume	Cash advances based on Stripe data, automated repayments	Not invoice factoring (advance-based)	Stripe Connect ecosystem

Why it’s worth partnering with a third‑party factoring provider

Instead of deploying your own funds, you embed a provider’s financing service into your platform. The provider:

advances money to suppliers
collects from buyers
underwrites credit risk
manages collections and compliance (KYC, AML)
offers white‑label APIs so the user experience is seamless

Your marketplace stays the client-facing layer. The integration is usually via API (or occasionally via dashboard) so that:

suppliers see “Get paid now” options inside your interface
buyers continue with normal payment terms
all reconciliation, risk, and operations are handled behind the scenes.

How embedded invoice factoring works (step‑by‑step)

Here’s a typical flow:

Supplier completes a sale and issues an invoice to the buyer.
Your platform validates the invoice (invoice data, buyer identity, terms).
You call the factoring provider’s API to request financing.
If approved, the provider advances funds (often up to 100%) to the supplier — typically within 24 hours.
The buyer pays the provider at the invoice due date (30, 60, 90 days).
Provider collects, deducts their fee, and reconciles.
If buyer defaults, the provider bears the loss (in a non‑recourse model).

Because this is “embedded,” the supplier and buyer never have to leave your platform to see or manage it.

Example providers offering embedded invoice factoring

Several platforms offer white-label, API-powered invoice financing for marketplaces and SaaS businesses. Here are leading options:

Aria

Ideal for: B2B marketplaces, SaaS, procurement, and services

Instant payments to sellers (within 24h)
Absorbs credit risk (non-recourse)
Full API stack: invoice validation, KYC, credit scoring
Works globally in 100+ countries and integrates with PSPs like Mangopay and Adyen
Known for 90%+ invoice approval rates

Mondu

Ideal for: B2B procurement and product marketplaces in Europe

Offers both “Get Paid Now” and “Buy Now, Pay Later” options
Flexible buyer terms (30–90 days)
Strong EU presence and risk infrastructure
REST API and widget-based onboarding

Sonovate

Ideal for: Recruitment, consulting, and staffing platforms

Funds invoices tied to timesheets or placement cycles
Offers payroll financing, bad-debt protection, and automated payouts
Purpose-built APIs for labor and HR platforms

Treyd

Ideal for: Wholesale and inventory-heavy marketplaces

Offers purchase order and supplier prepayment financing
Suited for businesses with long inventory cycles
Good for physical product marketplaces with delayed revenue recognition

Stripe Capital

Ideal for: Platforms already using Stripe

Cash advances based on transaction data
Automated repayments through Stripe Connect
Note: Not invoice factoring, better for sellers with high sales volume

How your platform makes money

You typically monetise invoice factoring in two ways:

Revenue share. There are three main ways to implement this:
- Absorb the fee and somehow integrate it in their general supplier or buyer pricing (the “take rate”)
- Pass on the fee to the supplier
- Pass on the fee and charge a supplement on top of it
Retention & volume. Faster payouts = more loyal sellers = more transactions = more platform fees.

You also gain strategic advantages: improved NPS, less churn, and stronger marketplace liquidity.

What to evaluate when choosing a provider

Before integrating, ask:

Have they financed marketplaces before, not just standalone businesses?
Is the API developer-friendly, well-documented, and sandbox-ready?
Can it be fully white-labelled to match your platform’s brand and UX?
Do they handle KYC/KYB and compliance across your regions?
Is the model non-recourse (they take on buyer default risk)?
How quickly do they fund invoices?
Do they support multi-currency or cross-border transactions?
Are their fees transparent and predictable for your sellers?

Final takeaway on invoice factoring

You can embed invoice factoring into your B2B marketplace without risking your own capital. By partnering with a third-party provider:

Sellers get paid instantly
Buyers keep their usual payment terms
You earn new revenue and unlock marketplace growth
Your brand stays front and centre

With solutions like Aria, Mondu, or Sonovate, you turn payments into a differentiator — not a drag on growth.

Invoice factoring FAQs

What is embedded invoice factoring?

It’s a form of invoice financing built directly into a marketplace or SaaS platform. A third-party provider advances cash to suppliers and collects from buyers, all via API under your brand.

Do I have to use my own capital to offer it?

No. You partner with a provider who supplies the funding and takes on risk. Your cash flow stays untouched.

What if the buyer doesn’t pay?

In non-recourse models, the financing provider absorbs the loss. Always confirm this before signing.

Can I offer it to just a few sellers?

Yes. Most solutions let you pilot with select invoices, geographies, or supplier tiers.

How do I make money from it?

You usually earn a percentage of the invoice fee. It also boosts seller retention and transaction volume — indirectly growing your revenue.

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